Latest news with #CHARLEBOIS
Yahoo
15-05-2025
- Business
- Yahoo
CHARLEBOIS: Forget 'Elbows Up,' it's 'Wallets Out' for Canadian consumers
While Washington appears to be softening its stance with several key trading partners, Canada remains entrenched in a solitary and expensive tariff posture. This week, Loblaw president Per Bank issued a public warning: A new wave of price hikes, directly linked to Canada's retaliatory tariffs, is about to hit store shelves. For consumers, this will mean more products marked with a subtle yet telling symbol: 'T' — indicating tariff-impacted goods. Skeptics may view this as a convenient deflection tactic by Loblaw. But the issue extends far beyond one retailer. All major grocers will be affected. As of now, about 1,000 products at Loblaw stores already carry the 'T' symbol — a number expected to climb above 6,000 in the next two months as inventories run dry and replenishments reflect increased import costs. And these are just the direct effects. Indirect impacts are mounting, too, particularly for food manufacturers grappling with sustained input cost inflation on key imported ingredients. Since March 4, 2025, Canada has implemented several rounds of 25% counter-tariffs on U.S. goods in retaliation for protectionist measures from the Trump administration. The surcharges apply to a wide range of imports: Orange juice, peanut butter, wine, beer, coffee, appliances, apparel, tools, cosmetics and other consumer goods. In total, nearly $60 billion in imports are now affected. CHARLEBOIS: Crickets, collapse, consumer choice fuel Ottawa's protein problem CHARLEBOIS: Why tipping in Canada needs a rethink The agri-food sector is especially vulnerable to these trade frictions. With thin profit margins and a high reliance on strategic imports, food processors and retailers are under intense pressure. Ottawa's tariff list includes about $5.8 billion worth of U.S. agricultural products — dairy, poultry, fresh produce, candy ingredients, bouillons, condiments, grains, rice and more. Some iconic items, like Kentucky bourbon, have already disappeared from Canadian shelves. Since April, any U.S. vehicle not meeting Canada-U.S.-Mexico Agreement rules of origin is also subject to a 25% levy. In many cases, Canadian manufacturers have no viable alternatives. For a significant number of ingredients or components, the U.S. remains the only feasible supplier in the short term. The result? Higher costs, few substitutes and inevitably a pass-through to consumers. To its credit, the Mark Carney government has tried to shield some raw materials and sustain dialogue with Washington. But sources suggest Ottawa is considering expanding its countermeasures to cover up to $125 billion in imports — including fruits, vegetables, beef, pork, dairy, EVs and a range of electronic goods. Such escalation risks further undermining food security and the competitiveness of our agri-food sector. This tariff path imposes a double penalty on Canadians: Rising prices and shrinking choices. Ironically, despite Trump's aggressive tariff playbook, U.S. food inflation fell to 2% in April — way below Canada's. In theory, tariffs should drive prices up. That hasn't happened in the U.S., where a denser, more competitive market absorbs external shocks more effectively. Canada lacks that economic cushion. The 'Elbows Up' campaign may be meant to inspire resilience, but from an economic standpoint it's little more than a distraction. While the U.S. manages to contain food inflation at 2% despite aggressive tariffs, Canada is facing higher prices and fewer choices — a direct result of poor policy insulation and limited market competitiveness. Symbolic gestures won't offset structural inefficiencies. The message from grocers is clear: It's time for Ottawa to rethink its retaliatory tariff strategy — before the cost becomes too steep for households and industry alike. — Charlebois is the director of the Agri-Food Analytics Lab at Dalhousie University and co-host of The Food Professor Podcast.
Yahoo
01-03-2025
- Politics
- Yahoo
CHARLEBOIS: From Kyiv to Ottawa – the real war is over resources, not borders
The scene in the Oval Office on Friday between Ukraine President Volodymyr Zelensky and U.S. President Donald Trump was deeply unsettling. The geopolitical ramifications remain uncertain, but one thing is clear: peace in Eastern Europe may have drifted even further out of reach. For global food security, stability in that region is critical, and the current trajectory suggests an increasingly bleak outlook for Ukraine and its ability to regain economic and agricultural footing. What has transpired in negotiations between Ukraine and the United States under the new administration should serve as a stark warning to Canada. While the rhetoric surrounding Canada as the so-called '51st state' may be irritating and dismissive, what could unfold in the coming months is far more concerning. The U.S. has leveraged Ukraine's desperate need for support to secure access to its valuable mineral resources, all while using peace as a diplomatic cover. The global community has now witnessed a new form of economic coercion – offering military and financial assistance with explicit expectations of resource control in return. This is not diplomacy; this is a transactional power play. And Canada must take note. CHARLEBOIS: Nova Scotia smashes food trade barriers, will the rest of Canada follow? CHARLEBOIS: Canada's internal trade fix leaves major barriers untouched WARMINGTON: Conservative Leader Pierre Poilievre trades words with Donald Trump While international leaders have stepped up to defend the sovereignty of nations like Panama and Greenland, Canada has not received the same level of support. Not one global leader has spoken out against President Trump's recent inflammatory statements about Canada's status. Even British Prime Minister Keir Starmer, while in Washington last week, avoided commenting on Canada's sovereignty when directly asked. That silence is telling. Canada's political class has thus far responded to the '51st state' rhetoric with nothing more than performative indignation. The idea that the U.S. would formally annex Canada is absurd. The U.S. has no need to assume the burden of governing Canada when it can simply extract value from our vast wealth of resources through economic and trade policy. As Canada's former foreign minister Lloyd Axworthy recently pointed out, a country can exert control over another without outright annexation. This can be achieved through strategic access to three fundamental assets: natural resources, energy, and data. From a food security perspective, these are the pillars of a resilient agri-food sector. Canada is uniquely positioned as a world leader in all three, making it a prime target for foreign influence. Water, potash, and oil are among Canada's most valuable resources – resources the U.S. desperately needs to sustain its economic dominance. However, an often-overlooked asset in this equation is data. Canada's agri-food sector is undergoing a transformation, with advanced data analytics driving efficiency, sustainability and resilience. The U.S. understands that enhanced access to Canada's agricultural data and biotechnological expertise could propel its own agricultural sector far beyond its current capabilities. Canadians can worry about symbolic threats of annexation, but the real concern should be the looming economic and geopolitical maneuvering that could compromise our strategic resources. The coming months may bring further challenges, and Canada's political landscape is poised for change. However, whoever takes the helm must move beyond mere anti-annexation rhetoric and reactionary trade measures. The priority should be safeguarding Canada's competitive advantages – its resources, energy independence and agri-food data. Rejecting American products and boycotting American tourism may offer short-term emotional satisfaction, but such gestures will not shield Canada from a White House that plays geopolitical chess while Ottawa remains stuck playing checkers. The real defense against economic subjugation is a proactive strategy to fortify the industries that make Canada a global leader in food security and sustainability. – Dr. Sylvain Charlebois is the director of the Agri-Food Analytics Lab at Dalhousie University and co-host of The Food Professor Podcast
